According to the International Data Corporation (IDC) Worldwide
Quarterly Enterprise Infrastructure Tracker: Buyer and Cloud
Deployment, spending on compute and storage infrastructure products
for cloud deployments, including dedicated and shared IT
environments, increased 18.5% year over year in the fourth quarter
of 2023 (4Q23) to $31.8 billion. Spending on cloud infrastructure
continues to outgrow the non-cloud segment with the latter growing
16.4% year over year in 4Q23 to $18.9 billion. The cloud
infrastructure segment saw unit shipments decline 22.8% in the
quarter with an increase in average selling prices (ASPs) mostly
related to higher than usual GPU server shipments to
hyperscalers.
"Cloud infrastructure spending continues to accelerate towards
more robust configurations mainly fueled by the explosion of
AI-related investments," said Juan Pablo Seminara, research
director, Worldwide Enterprise Infrastructure Trackers at IDC.
"Even though some caution remains on the socio-political side, the
improvement in economic prospects contribute to a very positive
spending outlook for 2024 and 2025 where cloud-based spending is
expected to rebound at double-digit growth rates."
Spending on shared cloud infrastructure reached $22.8 billion in
the quarter, increasing 27.0% compared to a year ago. The shared
cloud infrastructure category continues to capture the largest
share of spending compared to dedicated deployments and non-cloud
spending. In 4Q23, shared cloud accounted for 44.9% of total
infrastructure spending. The dedicated cloud infrastructure segment
saw modest growth of 1.4% year over year in 4Q23 to $9.0
billion.
For 2024, IDC is forecasting cloud infrastructure spending to
grow 19.3% compared to 2023 to $129.9 billion. Non-cloud
infrastructure is expected to decline 1.4% to $57.6 billion. Shared
cloud infrastructure is expected to grow 21.6% year over year to
$95.3 billion for the full year while spending on dedicated cloud
infrastructure is expected to have robust growth of 13.3% in 2024
to $34.6 billion for the full year. The subdued growth forecast for
non-cloud infrastructure, which is forecast to decline 1.4% year
over year in 2024, reflects the expectation that the market still
faces some challenges. Cloud spending will remain very positive due
to new and existing mission-critical workloads, which often require
higher-end, performance-oriented systems.
A graphic illustrating IDC's 2023-2028 forecast for worldwide
enterprise infrastructure spending by category (Cloud & Shared,
Cloud & Dedicated, and Non-Cloud & Dedicated) is available
by viewing this press release on IDC.com.
IDC's service provider category includes cloud service
providers, digital service providers, communications service
providers, hyperscalers, and managed service providers. In 4Q23,
service providers as a group spent $30.0 billion on compute and
storage infrastructure, up 19.6% from the prior year. This spending
accounted for 59.2% of the total market. Non-service providers
(e.g., enterprises, government, etc.) also increased their spending
to $20.7 billion, growing 15.2% year over year. IDC expects compute
and storage spending by service providers to reach $124.3 billion
in 2024, growing 21.8% year over year.
On a geographic basis, year-over-year spending on cloud
infrastructure in 4Q23 showed mixed results, with China, the Middle
East, and Canada showing negative growth led by China with a
decline of 31.1%, mainly affected by an economy still under
pressure in the fourth quarter of 2023. The Middle East &
Africa saw spending decline 12.2% due to difficult year-over-year
comparison that resulted from large projects at the end of the
prior year. Spending in Canada declined 4.4% year over year. The
regions with increased spending in 4Q23 were Asia/Pacific
(excluding Japan and China), the United States, Central &
Eastern Europe, Japan, Western Europe, and Latin America, where
cloud spending grew at 48.2%, 40,6%, 11.3%, 10.5%, 2.7%, and 1.5%
year over year, respectively. Most of this growth was related to
large high-performance computing and AI-based projects.
Long term, IDC predicts spending on cloud infrastructure to have
a compound annual growth rate (CAGR) of 12.8% over the 2023-2028
forecast period, reaching $199.1 billion in 2028 and accounting for
73.6% of total compute and storage infrastructure spend. Shared
cloud infrastructure spending will account for 71.8% of the total
cloud spending in 2028, growing at a 12.8% CAGR and reaching $143.0
billion. Spending on dedicated cloud infrastructure will grow at a
CAGR of 12.9% to $56.1 billion. Spending on non-cloud
infrastructure will also rebound with a 4.1% CAGR, reaching
$71.4 billion in 2028. Spending by service providers on compute and
storage infrastructure is expected to grow at a 13.1% CAGR,
reaching $188.5 billion in 2028.
IDC's Worldwide Quarterly Enterprise Infrastructure Tracker:
Buyer and Cloud Deployment is designed to provide clients with a
better understanding of what portion of the compute and storage
hardware markets are being deployed in cloud environments. The
Tracker breaks out each vendors' revenue into shared and dedicated
cloud environments for historical data and provides a five-year
forecast. This Tracker is part of the Worldwide Quarterly
Enterprise Infrastructure Tracker, which provides a holistic total
addressable market view of the four key enabling infrastructure
technologies for the datacenter (servers, external enterprise
storage systems, and purpose-built appliances: HCI and PBBA).
Taxonomy Notes IDC defines cloud services more
formally through a checklist of key attributes that an offering
must manifest to end users of the service.
Shared cloud services are shared among unrelated
enterprises and consumers; open to a largely unrestricted universe
of potential users; and designed for a market, not a single
enterprise. The shared cloud market includes a variety of services
designed to extend or, in some cases, replace IT infrastructure
deployed in corporate datacenters; these services in total are
called public cloud services. The shared cloud market also includes
digital services such as media/content distribution, sharing and
search, social media, and e-commerce.
Dedicated cloud services are shared within a single
enterprise or an extended enterprise with restrictions on access
and level of resource dedication and defined/controlled by the
enterprise (and beyond the control available in public cloud
offerings); can be onsite or offsite; and can be managed by a
third-party or in-house staff. In dedicated cloud that is managed
by in-house staff, "vendors (cloud service providers)" are
equivalent to the IT departments/shared service departments within
enterprises/groups. In this utilization model, where standardized
services are jointly used within the enterprise/group, business
departments, offices, and employees are the "service users."
For more information about IDC's Quarterly Enterprise
Infrastructure Tracker: Buyer & Cloud Deployment, please
contact Lidice Fernandez at lfernandez@idc.com.
About IDC Trackers IDC Tracker products provide
accurate and timely market size, vendor share, and forecasts for
hundreds of technology markets from more than 100 countries around
the globe. Using proprietary tools and research processes, IDC's
Trackers are updated on a semiannual, quarterly, and monthly basis.
Tracker results are delivered to clients in user-friendly Excel
deliverables and on-line query tools.
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About IDC International Data Corporation (IDC) is
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version on businesswire.com: https://www.businesswire.com/news/home/20240329035955/en/
Lidice Fernandez +1 305-351-3057 lfernandez@idc.com
Juan Seminara +54 11-4590-2398 jseminara@idc.com
Michael Shirer +1 508-935-4200 press@idc.com